Hicks Thomas Wins Appeal in East Texas Mineral Rights Dispute

Firm lawyers successfully argued to the 6th Court of Appeals in Texarkana that MJR’s right of first refusal
was a covenant running with the land. The ruling reversed the summary
judgment granted by the trial court in Longview and sent the case back
for trial.

“We’re very pleased for our client. There is a considerable
amount at stake, since the ruling affects our client’s rights in
numerous oil and gas leases,” said Hicks Thomas appellate lawyer
J. Stephen Barrick of Houston. Also representing Dallas-based MJR is firm co-founder
John B. Thomas, and attorneys
Jody Sheets and Jason Gunderman.

The appeals court held that a 2002 settlement agreement referenced in a
recorded assignment of overriding royalty interests giving MJR a right
of first refusal on any sale of the leases was a covenant running with
the land that was binding on the original parties’ successors and
assigns. Some of the successors failed to comply with MJR’s first-refusal
rights, and that is what led to the lawsuit against AriesOne, GFP Texas
Inc., Miken Oil Inc. and SND Energy Co.

“The ruling was important because the court clarified that a right
of first refusal in an oil and gas lease can be a covenant running with
the land, even if it is not described with those words,” said Mr.
Thomas. “This is a big win for our client.”

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